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Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity
Dissertation (MBA)--University of Pretoria, 2014.
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| Other Authors: | |
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2015
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| _version_ | 1867613606691995648 |
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| access_status_str | Open Access |
| author2 | Holland, Mike |
| author_browse | Holland, Mike |
| author_facet | Holland, Mike |
| collection | Thesis |
| dc_rights_str_mv | © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Dissertation (MBA)--University of Pretoria, 2014. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/43973 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:38:49.043Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2015 |
| publishDateRange | 2015 |
| publishDateSort | 2015 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/43973 Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity Holland, Mike ichelp@gibs.co.za Ben-Ami, Ziv UCTD Petroleum reserves Energy policy -- South Africa Capital costs Dissertation (MBA)--University of Pretoria, 2014. This research investigates whether the South African Energy Regulator (NERSA) correctly prices the cost of equity, through looking at the petroleum storage sector. A model is built to simulate the current methodology for tariff setting and historical data is used to estimate the returns a regulated firm would have earned over the past 25 years. In addition, a benchmark cost of equity is calculated through a sample of US firms. Integrated firms are then decomposed to their revenue generating segments and cost of equity per segment is then estimated. The study finds that the methodology calculates a return lower than that earned by the market (measured through the J203). The study further finds that the risk to which the regulated company is exposed to, defined in terms of variability of retunes, is not significantly different than that of the market. Lastly, the study finds that the benchmark cost of equity is significantly higher than that calculated by the Regulator. Recommendation for Regulator consideration as well as for further research are provided. lmgibs2015 Gordon Institute of Business Science (GIBS) MBA Unrestricted 2015-03-13T11:01:37Z 2015-03-13T11:01:37Z 2015-03-24 2014 Mini Dissertation Ben-Ami, Z 2014, Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/43973> http://hdl.handle.net/2263/43973 en © 2014 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD Petroleum reserves Energy policy -- South Africa Capital costs Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity |
| title | Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity |
| title_full | Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity |
| title_fullStr | Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity |
| title_full_unstemmed | Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity |
| title_short | Regulatory risk - does the national energy regulator of South Africa correctly price the cost of equity |
| title_sort | regulatory risk does the national energy regulator of south africa correctly price the cost of equity |
| topic | UCTD Petroleum reserves Energy policy -- South Africa Capital costs |
| url | http://hdl.handle.net/2263/43973 |